Bitcoin woes: Cryptocurrency investors unable to link bank accounts to wallets, says report

Tho’ India is still sitting astride the fence when it comes to taking a stand on cryptocurrencies – the finance ministry is no fan but the RBI has not banned digital currencies like Bitcoin yet – retail investors ter the country are already ter a soup.

According to a report ter The Hindu BusinessLine, many investors are presently neither able to trade on several bitcoin exchanges te India strafgevangenis use their linked bankgebouw accounts to withdraw/deposit money earned from trading. Given that a latest survey by the income tax department exposed 6 lakh active cryptocurrency traders ter the country-unofficial figures waterput this at several times more-in nine cryptocurrency exchanges trading up to Rs 17,800 crore, wij are looking at a major problem. With banks and the bitcoin exchanges passing the buck to each other ter response, investors don’t know where to go for grievance redressal.

For example, Varanasi-based Vandana Tiwari told the daily that when she recently attempted to invest about Rs 20,000 on a leading bitcoin exchange from hier bankgebouw account, through the NEFT transaction went through, the amount did not reflect on hier bitcoin account. “I had written to the exchange but they said that they have not received the money while my canap statement shows that the money wasgoed credited. Now, I don’t know whom to treatment. Banks are also not providing any clarification,” she added. She is not alone. On one arm, other investors report that they are being asked to verify bankgebouw accounts when they attempt to withdraw bitcoin investments, and on the other arm Belfrics India, an arm of Singapore-based exchange Belfrics, has admitted that the podium stopped taking fresh deposits and is awaiting further clarity from regulators.

Ajeet Khurana, recently named spil the Head of the Blockchain and Cryptocurrency Committee of India (BACC), has issued a statement telling that “The latest knee-jerk deeds by few banks ter terms of closing bankgebouw accounts of some cryptocurrency exchanges has led to hardship to thesis citizens. It also created obstacles for exchanges ter being able to carry out business. Te the past, RBI has issued warnings and consumer education statements about cryptocurrencies. BACC welcomes RBI’s deeds and regard them spil measured and well-thought out. It is our understanding that RBI has not asked banks to close accounts of any cryptocurrency exchanges. Wij invite banks to go after ter the footsteps of RBI, understand this emerging sector, recognize the harmful effects of their knee-jerk reactions, and only then determine their course of activity.”

While the RBI is still mostly mum on the topic, there is enough evidence of a crackdown te progress. Last week came news reports that the Registrar of Companies is no longer registering digital currency exchanges. This followed the income tax department’s “surveys” of the leading Bitcoin exchanges ter the country last month. The tax sleuths were basically looking for evidence to establish the identity of investors and traders spil well spil transactions undertaken to analyseren the taxability of cryptocurrencies. Reports quoting the survey claimed that a 25-year-old, who had invested Rs 25 lakh ter bitcoins, had seen valuation multiplying to Rs 760 crore. No wonder the taxman wants a slice of the pie while it lasts.

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